Legal & finance tips for Divisions
Why have the hotel hold your money for months on end? Did you know that in most instances you can supply the hotel with a letter of guarantee rather than a deposit? Paying a deposit allows the hotel to hold the division’s money for months and sometimes more than a year in order to “hold” your place. Paying a deposit can put a division at a disadvantage should there be an issue with the hotel as well since the hotel has your money. Please get in touch with the APA Office of Finance or Office of general Counsel for a form letter of guarantee.
Did you know that there are several areas of great importance in a hotel contract that if handled correctly at the outset, will give you peace of mind down the road? For instance, attrition should be 75 percent, although 80 percent is acceptable; cancellation penalties should be based on the room rate and not the room revenue the hotel expects to make off a guest (telephone charges, internet, etc.); ADA clauses must be in the contract; who is signing for the Division?; and it never hurts to ask the hotel to comp internet/WiFi or parking. The APA Office of General Counsel can review your hotel contracts to be sure you are not missing anything.
APA's Central Office can provide Division leaders with legal or finance support. For additional questions, contact:
Legal/Congract Questions: Jesse Raben
Finance Questions: Richard Payling-Wright